Federal SB5386 amends the Fair Labor Standards Act to increase penalties for wage theft.
Federal SB5386 amends the Fair Labor Standards Act of 1938 to increase criminal and civil penalties for wage theft. It introduces harsher penalties for willful violations of wage laws, including fines and imprisonment. The bill also establishes a right to full compensation for employees, ensuring they receive the greater of contractual or statutory wage rates. Fines collected from violators will fund the Wage and Hour Division of the Department of Labor to enforce wage laws.
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